US Tax Authority Makes Issuing Cryptocurrency Guidance a Priority

By Mary T. | May 22, 2019
US Tax Authority Makes Issuing Cryptocurrency Guidance a Priority

The US Internal Revenue Service (IRS) has recently issued a letter, claiming that drafting the tax guidance for crypto-related activities has been made its top priority.

Specifically, the letter – which was written to answer the request by the U.S. Representative Tom Emmer, along with 21 other Congress representative – aimed to help determine the legally correct way to report taxes for crypto assets. Per the letter, the representative expressed that “substantial ambiguity on a number of important questions about the federal taxation” of the rising type of asset is still present.

In the letter sent to U.S rep Tom Emmer, the IRS claimed that it will directly tackle the situation, by making it “a priority” to come up with sufficient and suitable regulatory guidance for cryptocurrency. The guidance will include proper instructions for a few distinctive concerns of businesses like which are the suitable methods for calculating cost basis, cost basis assignment and tax treatment of forks.

Charles Rettig – the IRS Commissioner – further stated in the letter that cryptocurrency will be classified as property, which means that the purchasing and selling of digital coins will be regulated under the tax laws applied to exist property transactions. Rettig has also revealed that the IRS is involving key players in the crypto field in the process of determining which areas are in need of regulatory clarity.

Last year, US Congressman Emmer has reportedly introduced three bills to support blockchain and crypto: the Resolution Supporting Digital Currencies and Blockchain Technology, the Blockchain Regulatory Certainty Act, and the Safe Harbor for Taxpayers with Forked Assets Act.

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